Showing posts with label Tata Nano. Show all posts
Showing posts with label Tata Nano. Show all posts

Friday, 21 February 2014

Warm Farewell For Maruti 800



For past three decades this car provided the rites of passage for every middle class Indian graduating from two to four wheelers. Hence its swan song evoked a welter of emotions as it was the original people's car on Indian roads. Though many other aspirants for that title came along, none could replicate the success of Maruti 800.

This small car had become a signature vehicle for the middle class, though over a period of time it did get devalued by few notches when other better options came along. However the fact that the car will stop rolling out of assembly lines evokes a lump in throat even among those who had traded their Maruti 800 long ago for far more spacious offerings.

However the little remembered fact is that the birth pangs this car suffered were enormous. It had to go through a politico-legal wringer before the first car rolled out of the assembly line. The Maruti project was the baby of the then political enfant terrible Sanjay Gandhi and was seen as an example of cronyism in the licence permit raj. After the Janata government came to power in 1977 the company was liquidated, a commission was formed to investigate various scandals associated with it. Meanwhile, the factory at Gurgaon (not a single car had rolled out by then) was mothballed during its tenure.

A year after Indira Gandhi came back to power in 1980, it was decided to revive the venture. Under the chairmanship of V Krishnamurthy, a civil servant, the hunt for a foreign collaborator began. They zeroed in on Japanese auto major Suzuki (more famous for its motorcycles) and as per the JV signed, Suzuki were to supply compact built units. The rest they say is history.

The blooming of Maruti 800 coincided with the rise of Indian middle class and with the liberalization of the 1990s its sales entered top gear. Easy finance options made the car all the more affordable. Soon it became an indispensable component of 'decent marriages' (a euphemism used in newspaper matrimonial ads to hint that lavish dowry will be paid, as against 'simple marriage') and replaced Bajaj and Lambretta scooters (both now reduced to museum pieces) from the dowry list. It became an aspirational car for the yuppies and the affluent class in the hinterlands.

Soon the Indian roads began getting overrun by these 800 cc wonders and elbowed out old jalopies such as Ambassador and Premier Padmini. Though it was no match to their size and spaciousness, it made up for it by being generations ahead in terms of technology. Its low turning radius made it easier to handle on crowded city roads and gallis.

The coming of Zen in mid-nineties and later Korean players such as Hyundai Santro and Daewoo Matiz took some sheen off its prime position.  But the doughty Maruti 800 soldiered on, aged gracefully and displayed a longevity way beyond anybody's expectation. Even today it maintains a commanding position in the entry level segment, despite cheaper offering like Tata Nano. Hopefully Maruti will continue its entry level dominance with Alto 800.

Picture courtesy: Facebook


Also Read: Bangalore Beat

Friday, 6 December 2013

Tata Nano In Its Labyrinth


The Tata Nano's poor run on sales front now even has Ratan Tata worried. He now says the whole idea of packaging it as a 'cheap car' was a mistake. Tata Nano had created a worldwide pre-launch buzz in 2008 on this 'cheap' tag and auto experts in West and Far East were baffled as to how someone could sell a car for a mere $2,000 (the rupee was in a much better shape those days).

Back home auto analysts had felt that for the price conscious Indian consumer the Rs 1-lakh car (though the actual cost was much higher) will be a steal too hard to resist. After all it is an established fact that Indians are suckers for anything cheap; you just need to look at the cell phone market and see how sub-Rs 10,000 smartphones by Micromax and Karbonn are selling.

They opined that it will soon transform the way middle and lower-middle class Indians commute, somewhat akin to what Maruti 800 did in 1990s to upper middle class. Rivals Suzuki and Hyundai were wondering how Nano will impact their own entry level offerings such as Alto and Eon respectively.

Motorists reeling under traffic jams and potholed roads were left wondering as to how much their regular commuting time will increase, once the roads get overrun by Nanos.

Environmentalists with knitted brows saw it as a recipe for disaster with impending spike in pollution levels in our cities and small towns. Nobel Prize winner Rajendra Pachauri confessed he was having 'nightmares' about the proposed car. But now these people can breathe easy as Tata Nano has not exactly set its sales graph on fire. Though initially there was some novelty interest, subsequently the deliveries never took off as expected.

I remember a friend of mine who happened to see a Nano in motion for the first time had remarked, "I thought some luggage auto was coming from behind, before I actually saw the car."

Tata Nano's 'cheap' tag became more of a liability than an USP. Firstly Tatas were unable to sell the car at promised Rs 1 lakh and secondly the actual price was within the striking distance of Hyundai Eon and Maruti Alto 800, which offered far better features like power steering and their after sales service was much better. Moreover the used cars' market too offered vehicles with much better features at more or less same price. So why settle for a glorified auto rickshaw and be called the owner of a 'cheap' car! To add to their misery the news of some cars catching fire went viral on the net and Tatas were left fire-fighting adverse publicity.

Now it is planning a makeover to appeal to youngsters and urban professionals by pepping up on the colour and exterior design front. It is even bringing in a power steering and a diesel version, albeit at a higher price. But the youth segment often aspires for power and speed, which I doubt Nano can fulfill. Rural market holds promise, but then it runs the risk of getting stigmatised as dehati car.

Also Read: Bangalore Beat